Tests to determine fixtures are whether or not they stay with the property o The intent test o The annexation test o The adaption test o The relationship of the parties test Trade fixtures o Belong to the tenant of the building o Personal property consisting of display counters cabinets mobile partitions etc Legal Rights of Real Estate Ownership 1 The right of exclusive possession and control 2 The right of quiet enjoyment 3 The right of disposition Freehold estates o Fee simple absolute or fee simple The best that you can get Nonfreehold estates 1 Estate for years 2 Periodic tenancy a Ex a beach condo b Rent by weeks months etc 3 Tenancy at will a There on behalf or will of the landlord 4 Tenancy at sufferance a Go past your time they want you out Direct Co ownership Forms 1 Joint tenancy a Two or more parties owning property together b c Ex Parents owning property Joint tenancy includes the RIGHT OF SURVIVORSHIP 2 Tenancy by the entireties a Only 14 states do this b Protects real estate from creditor s claims against ones spouse c Cant take the property away because of someone else s debt 3 Tenancy in common a b Ex Business partners If one dies their share of the property will go the his or her heirs 4 Condominiums and cooperatives a You own the interior b Condominium refers to a form of co ownership Public and private limits on personal property o Police power State has right to make rules and laws to ensure the safety health and general welfare o Eminent domain Last sentence of the 5th amendment in US constitution Way for government and agencies to acquire private property for public use Must be for a public use AND Must have just compensation o Escheat The right of government to claim ownership of property when the owner died and has no heirs Private contracts and other methods of limiting property rights o Easements Easement in gross Types of easements Involve a right to use the land of another is the most common form of easement Easements by implication o Have the right to us property o Ex if your property was in the middle of a tic tac toe board you would be allowed to use another persons property to get to a main road Easement by necessity Easement by prescription o If you cut thru someone s property as a short cut for a long enough period of time you would be entitled to continue to use it as a short cut o Restrictive covenants Property owners may impose limitations on the use of a property by future property owners by including restrictive covenants AKA Deed restrictions The tax on real estate property represents the largest single source of revenue for most local governments Evidence of good title o Abstract and attorney s opinion o Title insurance Will repay back the amount that you borrowed Pays the band and your down payment Deeds in private grants of title o Requirements of a valid deed include The names of the grantor and grantee A proper description of the property The words of conveyance The signature of the grantor and delivery to the grantee Statement of consideration o The general warranty deed What you want The grantor will defend your title to as far back as it goes o Special warranty deed Not the best option o Quitclaim deed Public grants of title to real estate the title Says the grantor didn t mess up with THEIR title but have no responsibility for the title before them Will pay a small amount of money to buy out a persons part of o A grant or conveyance of land from a government entity to an individual owner this type of grant was conveyed using a PATENT o Adverse possession and prescription Acquiring ownership of property owned by another by using the property in a way defined as actual continuous and exclusive Requires more than 10 years of use Cutting across someone s property daily o Title from nature Accretion If land is deposited ownership rights to that land occur through accretion Ex sand build up on a beach front property owner now has a further property line If water recedes leaving dry land ownership rights occur through reliction Ex a lake drying up o Property descriptions of real property THIS WILL BE ON THE TEST Reliction A township A 36 square mile section consisting of 36 one square mile sections One section one square mile 640 acres 6 7 2 5 4 3 8 9 10 11 12 13 1 31 36 KNOW THE NUMBERS OF THE FOUR CORNERS Real estate brokers as market facilitators o Bring together buyers and sellers o Work off of commissions o Residential brokers will put the sellers house on MLS MLS Multiple Listing Service o The commissions of the brokers are due at the closing Real Estate Agents o Single agents Florida has these o Dual Agents Not in Florida o Transaction Brokers Florida has these Does not represent either party Only assist with the transaction Listing contracts o Open Listing o Exclusive agency listing o Exclusive Right of Sale listing The one that is almost always offered The broker no matter what will always get his or her commission when the house sells The most important document in real estate is the contract of sale and Never let anyone take possession of your property before you get your purchase money Legal title Equitable title o Legal title passes from seller to buyer at the time of closing o The ownership interest one has in property upon the consummation of a valid sale contract o If the house burns down after this has been signed the buyer is crap out of luck Unless otherwise stated on the Contract of sale The title transfer is completed at closing Radon is a naturally occurring gas Preparation of closing statements KNOW ALL OF THESE FOR THE TEST o Typical buyer s expenses include Documentary stamps and intangible taxes on the mortgage and Mortgage and deed recording fees The appraisal credit report survey inspection and lender s note service fees Prepaid mortgage interest points Title insurance and buyer s attorney fees o Typical seller s expenses include Documentary stamp tax on the deed Mortgage satisfaction fees Seller s attorney fees Brokerage commission The date of contract effective date will be the date when the last one of the buyer and seller has signed or initialed the final counteroffer Title insurance is the most popular way people insure they have a good title Block busting Steering RESPA o Is a business practice of U S real estate agents and building developers meant to encourage white property owners to sell their houses at a loss by implying that racial ethnic or religious minorities o This term refers to the illegal